What if you want to withdraw cash from your Interactive Brokers account to meet immediate cash needs? In this article, I will show you the process to withdraw cash from your Interactive Brokers account.
More posts in this series
- Getting started with Interactive Brokers
- Funding your account with Interactive Brokers
- FX conversion with Interactive Brokers
- Interactive Brokers Portfolio Analyst
Initiate a withdrawal request
The procedures for withdrawing is rather similar to depositing cash into Interactive Brokers.
Head over to the Transfer & Pay section select Transfer Funds
Click on the Withdraw Funds tab to bring up the withdrawal options.
If you have your funds in SGD then select Singapore Dollar (SGD) – SGD is recommended to avoid incoming foreign currency commission fees at many banks.
You have the option to choose between GIRO/ACH or Bank Wire. The difference is as follows:
I would always select Bank Wire because it’s way faster. You can expect to see your funds within T+1 business day (T being the day it’s processed on IBKR’s end), where the processing takes place before the cut-off time.
The cut-off time for processing SGD wired withdrawals is 16:00 SGT (4 pm) so in order to receive the most timely (same day) withdrawals, it is recommended to submit your request before this cut-off time.
Despite submitting your withdrawal request before the cut-off time, it may take longer for your bank to credit the funds to your account, that’s why you can expect funds to be credited within T+1 days.
Click on Connect Your Bank under bank wire to proceed.
This will bring up the withdrawal transaction information similar to the deposit information.
You can create a nickname for the bank wire withdrawal – you can name it anything, for example, DBS Multiplier.
Under where will the funds be deposited, please select Bank for withdrawals to a local bank account.
It will bring up a wizard to help you input your bank account details, just search for your bank account and follow the instructions.
Once done, you can complete the form with your bank withdrawal details such as your bank account number.
If the bank you’re withdrawing to is not your own personal bank account (i.e. a third party), then under third party payments select Yes and fill in the third party withdrawal information and relationship – subject to compliance approval.
Once you’ve finished hit the blue continue button and you’re done!
Withdrawal fees and charges
IBKR allows one free withdrawal request every month, subsequent withdrawals are charged at the following rates:
Once again, third-party fees (such as those charged by your recipient bank are not shown) and they might be deducted from your proceeds when you receive them.
There are daily and weekly withdrawal limits imposed on IBKR clients. These limits are set out by your security device in use. Generally, the more secure the authentication used, the higher the withdrawal limits.
You can also only withdraw funds that have been marked as available (lower of trade and settlement date funds), or in excess of your initial margin requirements (for margin accounts), otherwise, your withdrawal request will be rejected.